Nationwide Building Society will be providing larger interest-free loans for green retrofitting, offering up to £20,000 to assist its mortgage customers in making their homes more energy-efficient. The society aims to encourage homeowners to invest in eco-friendly upgrades by increasing the borrowing limit for green initiatives.
The 0% green additional borrowing products are designed for improving a property’s energy efficiency and allow Nationwide mortgage holders to borrow between £5,000 and £20,000, up to a maximum of 90% loan-to-value (LTV) over a period of two or five years. This move comes after the society observed a low uptake of its previous green borrowing scheme, launched in June 2023 with a limit of £15,000.
Since its inception until the end of September 2024, there have been 1,900 completed applications, amounting to £21.1 million in lending. The average loan provided under the initiative is around £12,300, accounting for approximately 8% of Nationwide’s total additional borrowing applications.
Nationwide is streamlining the process by removing the six-month waiting period for new customers to become eligible for the loan. Customers can now apply for enhanced green borrowing as soon as their mortgage is finalized. Graham Lloyd, Nationwide’s head of strategy and sustainability, emphasised the importance of incentivising homeowners to invest in their properties to achieve the UK’s 2050 net-zero target.
The society is advocating for more public awareness campaigns promoting the benefits of retrofitting and advocating for the establishment of a national retrofit hub to guide consumers through the process. Nationwide’s research indicates that homeowners view retrofit success based on reduced bills, and the 0% borrowing option appeals to those already planning eco-friendly changes.
The 0% green additional borrowing loan is accessible through Nationwide’s mortgage advisers and brokers, with the funds earmarked for non-structural, energy-efficient home improvements like solar panels, heat pumps, window upgrades, and insulation. Nationwide allows customers to choose contractors or suppliers locally or nationally to carry out the work.
This initiative by Nationwide Building Society underscores the increasing importance of sustainability in the housing sector, encouraging homeowners to make environmentally friendly upgrades to their properties. By offering larger interest-free loans for green retrofitting, Nationwide is playing a significant role in promoting energy efficiency and supporting the UK’s transition to a more sustainable future.